Nwf Group Plc · LSE:NWF
Nwf — H1 2016 Earnings Presentation
27 slides from Nwf's earnings presentation, Feb 2, 2016
Slide 1: The Feed, Food and Fuel Group – Half Year Results
THE FEED, FOOD AND FUEL GROUP HALF YEAR RESULTS FOR THE PERIOD ENDED 30 NOVEMBER 2015
Slide 2: Key Highlights
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 1 KEY HIGHLIGHTS » Solid start to the year delivering on stated strategic initiatives » Difficult market conditions » Low milk price and falling commodity prices » Food retailers competitive environment » Warm autumn and winter to da
Slide 3: Results Summary
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 2 RESULTS SUMMARY Revenue Headline operating profit* Headline profit before tax* £224.6m (9.1%) £2.8m £2.6m + 4.0% Headline earnings per share* Net debt Dividend per share 4.3p + 7.5% £10.4m (16.1%) 1.0p * Stated before exceptional i
Slide 4: Operational Highlights: Feeds
OPERATIONAL HIGHLIGHTS NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 3 FEEDS GROWTH IN A DIFFICULT MARKET » Difficult market conditions with low milk prices continuing » Ruminant feed market volumes lower as a result of a warm dry autumn » Feed commodities fallen further in the period to histo
Slide 5: Operational Highlights: Food
OPERATIONAL HIGHLIGHTS NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 4 FOOD DELIVERING OPERATING EFFICIENCY » Customer demand ahead of capacity over the summer » Utilised external storage facilities in the North West » Service levels maintained at 99.7% » Focus on managing load preparation to
Slide 6: Operational Highlights: Fuels
OPERATIONAL HIGHLIGHTS NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 5 FUELS GROWTH IN A LOWER OIL PRICE MARKET » Significant fall in oil price to historic low, 47% fall in Brent crude compared to prior year » Improved affordability for customers with no negative impact on NWF » New start up o
Slide 7: Financial Review: Income Statement Summary
FINANCIAL REVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 6 INCOME STATEMENT SUMMARY Nov 2015 Nov 2014 May 2015 £m £m £m » Revenue decreased by 9.1% reflecting lower Revenue oil prices in Fuels and lower commodity Food 19.3 18.8 37.2 prices in Feeds Feeds 62.1 68.0 144.9 Fuels 143.2 160.3
Slide 8: Financial Review: Balance Sheet Summary
FINANCIAL REVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 7 BALANCE SHEET SUMMARY Nov 2015 Nov 2014 May 2015 £m £m £m » Fixed assets increased to £61.6 million as a Fixed assets 61.6 55.0 54.6 result of capex and acquisitions Net working capital 7.5 11.2 7.5 » Working capital (including a
Slide 9: Financial Review: Cash Flow Summary
FINANCIAL REVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 8 CASH FLOW SUMMARY Nov 2015 Nov 2014 May 2015 £m £m £m » Headline EBITDA* £4.8 million (H1 2014: Cash flows from operating activities £4.8 million) Operating profit 2.4 2.8 9.1 Depreciation and amortisation 2.0 2.0 4.0 Working cap
Slide 10: Financial Review: Net Debt Summary
FINANCIAL REVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 9 NET DEBT SUMMARY » Committed facilities of £65.0 million with RBS Movement in net debt until October 2019 14.0 12.4 8.7 » November 2015 net debt £10.4 million, 12.0 4.5 10.4 substantial facility and covenant headroom 10.0 8.0 Fac
Slide 11: Development Strategy: Group Solid Platform for Growth
DEVELOPMENT STRATEGY NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 10 GROUP SOLID PLATFORM FOR GROWTH » Diversified source of earnings » Solid cash generative business in large stable markets » Development focus on agriculture » Targeting consolidation opportunities in the UK » Targeting innov
Slide 12: Feeds Acquisition Opportunities
DEVELOPMENT STRATEGY NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 11 FEEDS ACQUISITION OPPORTUNITIES » Agriculture an attractive market for the Group GB Market 2011 2012 2013 2014 2015 » Population growth Milk (Litres) 11.4bn 11.5bn 11.0bn 11.6bn 12.2bn » Relationship with 4,500 farmers UK Da
Slide 13: Food Delivering Service & Efficiency
DEVELOPMENT STRATEGY NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 12 FOOD DELIVERING SERVICE & EFFICIENCY » Market for ambient groceries challenging but stable » Working under contracts with blue chip brands and retailers » Clear customer proposition » High service levels » Low cost and effic
Slide 14: Fuels Adding Depots to a Successful Network
DEVELOPMENT STRATEGY NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 13 FUELS ADDING DEPOTS TO A SUCCESSFUL NETWORK » Third largest oil distributor in the UK » Low cost depot focused operating model » Network built predominantly by acquisition » Strong track record » Low ROS, high ROCE > 20% Sta
Slide 15: NWF Investment Summary
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 14 NWF INVESTMENT SUMMARY Strong management team Growth opportuniQes Asset backing Focus on returns Good cash generaQon Growing dividend
Slide 16: Summary & Outlook
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 15 SUMMARY & OUTLOOK » Solid performance in the half year despite difficult markets » Targeted initiatives in all three divisions » Diversified source of earnings » Development strategy delivering growth » Acquisitions in line with s
Slide 17: Additional Information
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 16 ADDITIONAL INFORMATION » Business overview » Locations » Organisation » Main site photo » Five year financial performance » Ten year divisional track record » Additional market data
Slide 18: Business Overview: Feeds
BUSINESS OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 17 FEEDS Supply of feed to ruminants in the UK – principally dairy » National player – feeds one in six dairy cows in the UK, number two in the market » 567,000 tonnes per annum » Feed dairy, beef and sheep » Sell added value prod
Slide 19: Business Overview: Food
BUSINESS OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 18 FOOD Consolidation of ambient grocery products to UK supermarkets » 100,000 pallet spaces » 800,000ft2 of warehousing in Wardle » Market leader in the North West » 462 people » 100 trucks, 231 trailers » 99.7% service level » 2
Slide 20: Business Overview: Fuels
BUSINESS OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 19 FUELS Supply of fuels and fuel cards to commercial, domestic and retail customers across the UK » Third largest oil distributor in the UK » 62,500 customers » 224 people » 19 depots across the UK » Supply 39 retail petrol stati
Slide 21: Locations
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 20 LOCATIONS Feeds Dumfries Wardle* Stone Wixland Food Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Staffordshire Fuels Droitwich Dyserth Great Yarmouth Kenilworth Kingsbury Long Marston Mansfield NoZngham Southamp
Slide 22: Wardle Main Site
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 21 WARDLE MAIN SITE
Slide 23: Five Year Track Record
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 22 FIVE YEAR TRACK RECORD Revenue Headline PBT Headline EPS Dividend
Slide 24: Divisional Track Records
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 23 DIVISIONAL TRACK RECORDS Feeds Food 180 50 3.5 4.0 160 45 3.0 3.5 40 140 3.0 35 2.5 120 Operating profit £m Operating profit £m 30 Revenue £m 2.5 Revenue £m 100 2.0 25 80 2.0 1.5 20 60 1.5 15 1.0 40 1.0 10 0.5 20 0.5 5 - - - - 200
Slide 25: Organisation
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 24 ORGANISATION Chief Execu=ve Non Execu=ves Richard WhiQng Chairman: Mark Hudson Yvonne Monaghan Philip Acton Finance Director Company Secretary Brendon Banner Rob Andrew Feeds Food Fuels Andrew Downie Keith Forster Kevin Kennerley
Slide 26: Fuels Additional Market Data – Last Nine Years
$ 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 110.00 100.00 120.00 130.00 140.00 150.00 160.00 02/01/2007 02/03/2007 02/05/2007 02/07/2007 02/09/2007 02/11/2007 02/01/2008 02/03/2008 GROUP OVERVIEW 02/05/2008 02/07/2008 02/09/2008 02/11/2008 02/01/2009 02/03/2009 02/05/2009 02/07/2009
Slide 27: Feeds Additional Market Info
GROUP OVERVIEW NWF GROUP plc HALF YEAR RESULTS TO 30 NOVEMBER 2015 26 FEEDS ADDITIONAL MARKET INFO